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Cypriot Investment Scheme
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  • 29 November 2019 Νέα Πολιτική Αδειοδότησης

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Cypriot Investment Scheme
Repossession Property Yield Properties

Latest news

  • 9 December 2019 Villas for rooftops in Cyprus up to twenty six million euro

    Expensive homes and apartments for sale in Cyprus are growing and populating.... read more

  • 29 November 2019 Νέα Πολιτική Αδειοδότησης

    Υφιστάμενη κατάσταση read more

  • 27 November 2019 Property Investment is our Specialization

    Lately, we made a lot of sales in the Commercial Sector as very good bargains... read more

  • 27 November 2019 EU Citizenship by Investment in Cyprus Meetings in Cairo Egypt

    First, let me introduce myself, I am the Managing Director of New Zoe... read more

  • 8 November 2019 Small rise in property sales

    October saw a marginal rise in Cyprus property sales compared to the... read more

The Parliament approved the law on sale of loans

   
Nicosia:  The Plenary of the House of Representatives passed a law, by a majority, the amendment bill for the sale of loans to third parties, which is a prerequisite for the completion of the Troika of the eighth evaluation of the economic adjustment program.
 
In favor of the bill voted 26 deputies present DISY and DIKO party as against the present 25 deputies of AKEL, the CC EDEK, the Green Party and the European Party and independent MP constituency Famagusta, Zacharias Koulias.
 
The House also voted against the amendments majority of DISY and DIKO and voted against the amendments of the party AKEL, EDEK, Cyprus Green Party and Citizens' Alliance.

The purpose of the bill, entitled the Law on Purchase Credit Facility Act of 2015, is to provide power to the Central Bank of Cyprus to authorize, regulate and supervise credit facilities purchase issues (loans) are granted by a credit or financial institution in order to safeguard financial stability in the Republic.
 
Also, the House voted by a majority the bill which seeks to amend the Working Credit Institutions Law, to delete Article 16A which allows any licensed credit institution (PPE) to sell or dispose of all or part of the loan of Portfolio only other PPE in the Republic after having secured approval from the Central Bank of Cyprus.
 
Amendment DISY for the sale of loans to third parties adds a new article to the law under which the Central Bank and any person who is a director or officer does not have any responsibility in the event of any action, suit or other legal proceedings for damages of any act or omission in the exercise of its powers under this Act or under any instructions issued pursuant to this law, unless it is proved that the act or omission was not in good faith or the result of gross negligence.
 
Amendments DIKO are:
 
Excluded from the provisions of Article 3 credit facilities, which are allocated by PPE, including their branches, a natural person who is not a resident of the Republic or a legal person who is not registered in the Republic or other work or investments outside the Republic or to include their essential collateral mortgage on immovable property or charge property, located outside the Republic, or governed by the law of another country.
 
Also added to the voted law the phrase to create an asset management company or by private or public funds in accordance with Community law on state aid and taking into account debt sustainability.
Add the possibility of the Central Bank in the national interest to deny legal persons the authorization for acquisition credit facilities in the Republic not to permit the acquisition or increase of a qualifying holding in credit acquisition company and not allow appointment of a mentor at the administrative corporate body redemption credit.
 
Also, before selling the loan, a credit institution or financial institution or notify its intention to sell or dispose of all or part of the portfolio of credit facilities. The notification shall be made by publication in the Official Gazette and in three newspapers daily newspapers, while the borrowers and the guarantors thereof may submit within 45 days a proposal for the acquisition of salable credit facility.
 
Moreover, according to another amendment of DIKO, the bank calls the borrower and guarantors to submit within 45 days to submit a proposal to redeem the loan in a letter to the borrower or guarantors, while the borrower is not required to submit a proposal for the acquisition of the loan.
 
Also, the borrower will be able to submit a proposal for the acquisition of the loan only once and if not submitted such a proposal within 45 days, it shall be presumed that the borrower does not want submission.
 
According to another amendment, the bank which sells loans will submit the CB every six months a report which will be published on the number and amount of loans per category sold and redeemed by the borrower.
 
Moreover DIKO amendment was adopted by which the sale of loans to be governed by the jurisdiction of provincial courts unless otherwise specified in the credit facility agreement.
 
Speaking before the plenary before the adoption of the bills the President of DISY Averof Neophytou said he always made loan sales and added that "ignoring that there is legislation today sale of all loans without any control, with only one approval CB".
 
"Suddenly we heard for sale loans, we all have ideas how we protect. No ideas how we want to sabotage the country's path towards stabilization, "he added.
 
He said that DISY considers "positive amendments DIKO, the possibility of creating one problem loans management organization provided that will be made after consideration and approval of institutions and requires hard work and thinking to be able to convince" so you do not have impact on public finances.
 
He also said it is also important feature of the borrower prior to the sale of the loan to make a proposal to the bank and the opportunity to KT reject sale of loans for national security purposes.
 
He said, however, that it is not sure whether this is compatible with the European acquis.
 
Mr. Neophytou expressed the hope that "we even through our disagreements to keep accountability us that we can complete our national desire to come to Cyprus from the memorandum, to regain our credibility and our sovereignty."
 
The Parliamentary Spokesman of AKEL Stavros Evagorou said that we all want to get out of the Memorandum and the world to keep their homes, adding that "we have a global negative first for the SIC that reach 28 billion. Euro and despite the weapons and more tools that are given to banks, banks still have a problem. "
 
He said that what we have before us is yet another attempt on the part of this government, socialization of bank losses that goes with the same criminal behavior and their mismanagement and added that "the bill provides substantially massive transfer of wealth from the many the few that are hedge funds, vultures ".
 
The bill proposes massive xespitoma the world and borrowers are delivered unprotected in vultures funds, he added.
 
Mr. Evagorou said that AKEL calls on all Members to vote for the proposal to exclude loans with collateral up to 350,000 euros for the main house and business premises from the sale of these loans.
 
He also said that AKEL calls on banks to engage in bold restructuring with lower interest rates, lengthening period of the loans and remove the unfair terms, while proposing the creation of state social loans management organization with social criteria and character and added that the SIC concerning housing is Only 2.4 bn. euros.
 
The President of DIKO Nicholas Papadopoulos said that the Democratic Party wants to get out of the memorandum in March 2016 and not March 2026, and said it does not agree with those who embellish the situation and that we are champions.
 
Champions are in SIC, he said. Papadopoulos, who called deputies who disagree say what they suggest on how to deal with this country the biggest problem of the DSU ever faced country in history.
 
He said the Democratic Party will continue to insist in his opinion it is the only option before us, adding that there is no magic solution for addressing our problems but the right of redemption will reduce private borrowing to restructuring and where loans will become viable loans.
 
He also said that the creation of loan management is also important, although there is no political decision to create and added that the amendments give the right to VT refuse to sell these loans in foreign interest companies.
 
This protection is in addition to the insolvency which is because the amendments DIKO and EDEK prohibits disposals of property SMEs and residential value of less than 350,000 euros, he added.
 
The EDEK MP Nicos Nicolaides said "EDEK will vote against because we can not consent for another statute which leaves them exposed and vulnerable small borrowers."
 
"We are facing a blackmail by the Troika and the government side," he said, adding that "the government side waited the 24 hours to begin warning that the Cypriot economy will be destroyed if we do not vote the bill" while the last months complacent that the economy is doing well.
 
He said the SIC will be addressed through the correct and fair restructuring for which banks are reluctant to do KT showed inability to enforce framework that leads banks to fair and equitable restructuring.
 
He said given the banks a more powerful weapon and at the same time small borrowers are left exposed despite the promises of the Government, which showed weakness in the creation of a mechanism to administer the loans.
 
The President of the European Party Demetris Syllouris said that we are now facing the bill because a few months ago we voted in a context of insolvency, which "called by some and protective gear which turned into a net that entrapped within banks and borrowers to be complicated and convoluted and unable to make the restructuring of non-performing loans (NPLs). "
 
He said the European Party had predicted that this framework would serve neither the banks nor their borrowers and "we raised the question whether deliberately voted to lead to what some want to vote today."
 
Mr. Syllouris said that was what was sure to become that "to come today to vote to divest loans in a way that will not serve again," and praised the approach of the President of the Republic "albeit slowly crying the banks and finally tell them to deal with banking practice and not to seek laws ".
 
He said that "in a few weeks or months we will be here to make changes in insolvency, which did not reduce the SIC to the advantage today speculators."
 
The President of the Green Party George Perdikis said the parliament "has entered a very difficult and dangerous paths" and wondered why sit when all adopted in a backstage cooking, adding that "everything is determined and decided the last time the entry delay session ".
 
"We are not members of parliament, we are members of a prefabricated prank," he added.
 
He referred to other problems beyond the SIC that is, as said, in Swiss franc loans and other foreign currencies, ensuring the holders of securities, managing the assets of the People, the shorn depositors Laiki and Bank of Cyprus and flattened shareholders.
 
The left all meteors, borrowers in the corner and all the banks, he added.
 
Referring to the proposal of the Movement tabled in Parliament and Government, Mr. Perdikis said that this is the creation of a fund fund, a state-owned company, aiming at acquisition of non-performing housing loans and non-performing loans of small companies with market value up 300,000 euros and cost one billion euros.
 
He said the fund could the Government to buy from banks loans at a discount of up to 2.5 billion. Euro and this fund would have direct benefits from setting a new nominal value of NPLs at 1.5 billion. Euro borrowers will have a direct profit from mowing their loans up to 40%.
 
The MP Zacharias Koulias said that the House has huge responsibilities for all legislation passed and referred, inter alia, crimes such as 1,8 bn. Euros in support of the People, the recapitalization of banks by 1.6 billion. euro launched the PIMCO billions, mowing deposits, the ELA of the People, the securities and the sale of Cyprus branches in Greece.
These crimes were the legislations passed by this parliament, he added.
 
He said that today this House will be accountable to the history of the place if you stoop to give such power provided by this bill.
 

- See more at: http://www.philenews.com/el-gr/oikonomia-kypros/146/285768/i-vouli-enekrine-to-nomo-gia-tin-polisi-daneion#sthash.xAzmx3jX.dpuf